I dont understand how an apparently billion dollar company still requires to raise 45 million. Can someone ELI5 the economics of this?
We actually didn't need the money (we're cashflow-positive). In fact, we haven't touched the money from our Series B (in 2020) nor our Series C (in 2021). But raising money is helpful because a) it gets prospective customers interested in the product (oh, X company raised, let me check out what their product does), b) it gets prospective employees interested, c) it allows people externally to see that the company is…
So you have $125M in your bank account, you're fcf+ and don't need capital but decided to give up your equity for another $45M. so now you have $170M in your bank account yielding 0%, for which you paid the cost of your equity, which I can assure you is in the triple digits... because you wanted a techcrunch article for prospective customers and employees, which you could have spent A suggestion: if you want to really show progress and get a lot of press, do a buyback from employees/early investors instead. Signals to the world the level of confidence you have in your own stock.